T-Mobile Announces $0 Down Summer Promotion, With a Catch

T-Mobile announced a new summer promotion today, offering up its full selection of top tier devices for $0 down starting July 27. The catch, because there’s always a catch, is that your monthly payments will increase to make up the cost. We did the math, and it turns out that T-Mobile isn’t trying to gouge you in the longterm, but it isn’t really a promotion.

Take the iPhone 5 for example. If you buy it today from T-Mobile as a new customer you can either pay $649 upfront, or a down payment of $145.99 plus $21 monthly payments for the next 24 months, which adds up to $650. With the carrier’s new promotion, you’ll pay $0 down and $27 every month for 24 months, which comes out to $648. Ultimately it isn’t a deal at all; you’re still paying about the same amount, just spread out over two years instead of at the time of purchase. Add in two years of inflation, since you’re spreading that cost out, and you’re paying more. But we won’t get too deep into the economics of it all.

T-Mobile also notes that its summer promotion works with the network’s new JUMP! plan, which lets users upgrade their handsets twice-per-year, but at a $10 monthly cost. That means you could pick up a new phone from T-Mobile for free starting tomorrow, make down payments for six months, and then upgrade to a new device. Sounds like a pretty sweet deal, but before you run out remember that JUMP! isn’t quite as simple as it sounds. There’s always a catch, after all.

T-Mobile Promotes Unprecedented Deal This Summer – Zero Dollars Down for All Devices

America’s Un-carrier offers the ultimate promotion with the lowest upfront price on devices

BELLEVUE, Wash. — July 26, 2013 — In time for back-to-school, T-Mobile US, Inc. (NYSE: TMUS) will drive an unparalleled promotion this summer, dropping the upfront price on its entire lineup of devices in stores nationwide to zero dollars down. With this promotion, new and existing well-qualified consumers and small business customers will get affordable and hassle-free access to the latest 4G LTE smartphones, tablets, mobile hotspots and feature phones at the upfront price of $0 down with monthly device payments[1].

This limited-time promotion is available starting tomorrow, July 27, 2013. In addition to the promotion, customers also can take advantage of T-Mobile’s groundbreaking upgrade program, JUMP!™, which enables them to sign up to upgrade their phones when they want, up to twice a year as soon as six months from enrollment.

“The number of reasons not to switch to T-Mobile this summer is ZERO,” said John Legere, president and chief executive officer, T-Mobile US. “This is a fantastic offer and we’re making it easier than ever for customers to get the latest amazing devices. Adding Zero Down in addition to JUMP!, and Simple Choice with no contract is all about making wireless work for consumers and shaking up this industry.”

The hottest devices of the summer at the lowest upfront cost combined with T-Mobile’s Simple Choice Plan, unlimited data on a nationwide 4G network and no annual service contracts gives customers an opportunity that’s tough to beat. The promotion will be available nationwide at participating T-Mobile retail stores, via customer care, and online at http://www.T-Mobile.com. A selection of the devices included in the promotion is as follows:

JUMP!JUMP!, only from T-Mobile, offers customers the freedom to upgrade to a new device more frequently and affordably, and it includes handset protection that helps to protect against malfunction, damage, loss or theft – all for just $10 per month, per phone (plus taxes and fees). Customers can upgrade to a new phone, financed through T-Mobile’s Equipment Installment Program (EIP), twice every 12 months after they’ve been in the JUMP! program for six months.[3] Simply trade in an eligible T-Mobile phone in good working condition at a participating store location. Any remaining EIP payments will be eliminated, and current customers can purchase new phones for the same upfront pricing as new customers, with device financing3 and a no-annual-service contract Simple Choice Plan.

Simple Choice Plan

T-Mobile’s Simple Choice and Simple Choice for Business Plan start with a base rate of $50 per month for unlimited talk, text and Web with 500MB of high-speed data. Customers can get 2.5GB of high-speed data for $10 more per month per line or unlimited data for an additional $20 per month per line. Customers can add a second phone line for $30 per month, and each additional line is just $10 per month. There are no caps and no overages on T-Mobile’s network, and no restrictive annual service contracts.

When small business customers activate a new line or renew an existing line of service with a Simple Choice for Business plan (min. 500 MB data required), they can access T-Mobile’s Business Extras bundle for added value. Business Extras customers with capable devices may opt into a free year of 24/7 remote IT support from a well-recognized, third-party service provider and a year of T-Mobile North American Flat-rate Data feature, allowing free monthly access to up to 150MB of overage-free, high-speed data across North America, including Canada and Mexico on our partner networks.[4] Other benefits include two free paper-to-mobile form conversions, waived activation fees, Business Care support, Wi-Fi Calling on enabled devices, and free Smartphone Mobile Hotspot on select rate plans.

T-Mobile’s 4G LTE Network
T-Mobile’s 4G LTE network now reaches more than 157 million people across the United States and is live in 116 metropolitan areas. T-Mobile remains on target to deliver nationwide 4G LTE coverage by the end of the year, reaching 200 million people in more than 200 metropolitan areas. In addition, T-Mobile’s 4G HSPA+ service is available to 228 million people nationwide. By combining 4G HSPA+ and LTE network technologies, T-Mobile can provide customers with a strong, seamless nationwide 4G network experience[5].

About T-Mobile US, Inc.:As America’s Un-carrier, T-Mobile US, Inc. (NYSE: “TMUS”) is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The company’s advanced nationwide 4G and 4G LTE network delivers outstanding wireless experiences for customers who are unwilling to compromise on quality and value. Based in Bellevue, Wash., T-Mobile US operates its flagship brands, T-Mobile and MetroPCS. It currently serves approximately 43 million wireless subscribers and provides products and services through 70,000 points of distribution. For more information, please visit http://www.t-mobile.com.

Forward-Looking Statement:This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Any statements made herein that are not statements of historical fact, including statements about T-Mobile US, Inc.’s strategy, expected network modernization and other advancements, are forward-looking statements. Generally, forward-looking statements may be identified by words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “views,” “may,” “will,” “forecast,” and other similar expressions. The forward-looking statements speak only as of the date made, are based on current assumptions and expectations, and involve a number of risks and uncertainties. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: our ability to compete in the highly competitive U.S. wireless telecommunications industry; adverse conditions in the U.S. and international economies and markets; our significant capital commitments and the capital expenditures required to effect our business plan; our ability to adapt to future changes in technology, enhance existing offerings, and introduce new offerings to address customers’ changing demands; changes in legal and regulatory requirements, including any change or increase in restrictions on our ability to operate our network; our ability to successfully maintain and improve our network, and the possibility of incurring additional costs in doing so; major equipment failures; severe weather conditions or other force majeure events; and other risks described in our filings with the Securities and Exchange Commission, including those described in our Current Report on Form 8-K filed with the Securities and Exchange Commission on May 8, 2013. You should not place undue reliance on these forward-looking statements. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.